Burj Khalifa, Palm Jumeirah stay off Dubai auction list
Of the 35 properties auctioned in 2011 and amongst the list of properties going under hammer this year, none are from the Burj Khalifa, the world’s tallest tower, or Palm Jumeirah, according to a senior Dubai Land Department (DLD) official.
“We have not got a single property from Palm Jumeirah or Burj Khalifa to date.
“We have got a list of properties that have to be auctioned, but I can confirm that none of them are from these areas,” said Humaid Omran Al Shamsi, Section Head, Auctions Section, DLD, told Emirates 24|7.
This website reported earlier that the DLD will be auctioning 25 properties (freehold and non-freehold) in April and a total of nearly 80 properties this year.
In March, five out of the seven auctioned properties were sold. In 2011, 26 properties were sold through auction.
Asked why not one property from Palm Jumeirah has ever come up for auction, Charles Neil, Chief Executive Officer, Landmark Properties, says: “Any defaults would have been easily managed because the price recovery has been quite rapid, particularly in case of garden villa properties on the Palm.
Even apartments on the Palm are trading at levels that are above average for the market.”
Although prices of Burj Khalifa properties have fallen more sharply, Neil states they have also seen recoveries, but they have been relatively easy to sell for those people who had to sell them albeit at a loss.
Moreover, the situation with repossession by the banks has been a “tortuous” one as the courts have taken a long time to settle cases.
“And when there have been court enforced re-possessions, the floor price has been set too high with no takers.
“People who buy through auctions expect to see really big discounts on prices, but this was never happened.”
As an alternative, banks have preferred to take over the properties and come to arrangements with the borrowers regarding the outstanding debts and have opted to rent them out or wait until the market improves and then sell them on, he says.
Parvees Gafur, Chief Executive Officer, PropSquare Real Estate, believes it is mainly due to the profile of the owners in both the communities.
“Both the projects have picked up in prices from the lows, and for a seller it is no more difficult to find a buyer even if he is through issues with the bank or any financial institution.
“Also there is a possibility in their heavy selling days, they were mostly snapped for cash rather than finance," he mentions.
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